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Petrobras to More Than Double Lula Field Output in 2014

Petroleo Brasileiro SA (PETR3), the world’s biggest producer in deep waters, plans to more than double output at Brazil’s second-biggest discovery next year after installing another production vessel.

Petrobras, as the Rio de Janeiro-based producer is known, started pumping crude at the Cidade de Paraty unit today and will gradually increase output to 120,000 barrels a day in the second half of 2014, the company said in a statement. Output at the vessel will average 13,000 barrels a day this month and increase as it connects more wells, Petrobras said.

State-controlled Petrobras is counting on Lula and other fields in the so-called pre-salt region in deep waters of the Atlantic Ocean to double output by 2020. Lula is Brazil’s second-biggest discovery after Libra, an oil field Brazil plans to auction in October that holds as much as 12 billion barrels of recoverable crude. Petrobras will operate Libra with a minimum 30 percent stake.

Output at Lula has surpassed Petrobras’s initial forecasts, with individual wells pumping more than 30,000 barrels of oil and natural gas a day. In April Petrobras pumped 115,000 barrels of oil and gas a day at Lula, making it Brazil’s sixth-biggest producer.

To contact the reporter on this story: Peter Millard in Rio de Janeiro at pmillard1@bloomberg.net

To contact the editor responsible for this story: James Attwood at jattwood3@bloomberg.net

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